TMG Partners has been in the business of developing award-winning, financially-successful, community-based real estate for 35 years. As much as we have accomplished over the last three decades, we believe it is the way we THINK about our region, the risks we manage, the critical timing of our projects and the value we create that sets us apart.

Localism

Real Estate is
a local business.

No, really.

We don’t fly in. We live here.

David CropperDirector of Development

The San Francisco Bay Area is an extremely diverse real estate marketplace with countless micro-business climates teeming with possibility. But you have to be here—and know here—to make the most of the opportunities all around us. Having been exclusively committed to the Bay Area for over three decades, we have developed a keen local intuition which gives us a unique advantage in recognizing both the opportunities and risks in this complex market.

Regionalism

We Think Mega

If we try to solve our land use problems by focusing only on the nine Bay Area counties, we will fail.

Michael CovarrubiasChairman & CEO

As the Bay Area’s economy has grown over the last three decades, so too has its challenges—particularly related to transportation, housing, affordability and climate change. To plan for growth of 4 million more people in the next third of a century, TMG is thinking bigger, beyond our nine Bay Area counties, and working on longer term strategies to create greater connectivity across our entire megaregion.

Timing

It’s got to work at low tide as well as high tide.

Some of our best deals are the ones we didn’t do.

Matt FieldChief Investment Officer

Almost anyone can make money in a positive economic climate. But it takes discipline, depth of market knowledge and experience in all major product types to know when to buy and when to sell. The most profitable deals can be the ones you decide just don’t make sense or are outbid by an “out of town” competitor. Because we are active in our markets on a daily basis, TMG Partners has managed a portfolio through 35 years of market cycles that works in all phases and has withstood the sands of time.

Vision

huh?

Once it’s obvious, it’s too late.

Cathy GreenwoldSenior Advisor

If you wait for the statistical proof to confirm real estate opportunities, you’re looking backwards. TMG Partners has cultivated an approach to studying the business landscape that reveals market opportunities before they become obvious. Our contrarian investment strategy balances optimism and caution with the intent of turning forward-looking investments into no-brainers.

Returns

Redefining IRR

Our measure for success goes beyond profit.

Lynn TolinChief Operating Officer

Most investment professionals have a clear understanding of IRR: Internal Rate of Return, a purely financial measurement of performance. At TMG we use a different definition. For us, IRR means balancing Integrity, Relationships and Results. We measure every aspect of our business through this lens to ensure our partners, communities, tenants and buyers are treated with the highest degree of respect and responsibility while we consistently deliver superior financial performance.

SAN FRANCISCO—TMG Partners, one of the Bay Area’s largest mixed-use property developers, and Alcion Ventures have executed the sale of The Hamm’s Building, a 12-story, 184,706-square-foot office building at 1550 Bryant Street in San Francisco.

The Hamm’s Building is delivered 95% leased to a diverse group of tenants, including technology companies such as Rdio, and Asana, companies founded by some of the original backers of Skype and Facebook, respectively; and Salumeria, the creation of James Beard Nominated Chef Thomas McNaughton whose other restaurants include Flour + Water and Central Kitchen. The sale price was not disclosed.

Located in San Francisco’s Mission District, the former brewery was originally built for the Rainier Brewing Company in the early 1900’s. It gained its namesake as the “Hamm’s Building” when it brewed Hamm’s Beer from the 1950s-1970s. Once topped with a giant neon Hamm’s beer sign, the building is an icon to many San Franciscans. The building sat vacant until a rehab in 1985 transformed the old brewery into an office building.

While various capital expenditures were made over the years, TMG Partners and Alcion Ventures purchased the building in 2012 and launched a comprehensive renovation program to further reposition the building’s creative space, investing approximately $15 million in upgrades to the property. Improvements include a new exterior brick façade, renovations of the common areas, lobbies, restrooms, and a renovated common meeting room and roof deck atop the building with dramatic 360 degree views.

“The Hamm’s Building is a very unique asset with a fascinating history. We were pleased to be able to renovate and position it to be a popular choice for tenants on the south side of town for years to come,” said Michael Covarrubias, chairman and CEO of TMG Partners. “Tenants enjoy the building’s character, floor plans and location sought by today’s emerging technology companies.”

According to Covarrubias, the Mission District has benefited from its proximity to where employees are choosing to live, and its proximity to the SOMA submarket, “which has proven itself to be an attractive and vibrant location for tenants seeking space in San Francisco.” The industrial style space of the district, containing concrete buildings with high ceilings such as the Hamm’s Building, as well brick & timber space, began attracting technology tenants and other creative users looking for non-traditional office space during the dotcom boom. Today, major software and technology companies, including Advent Software, Adobe, Dolby Laboratories, and Zynga, have their headquarters there.

TMG successfully executed similar strategies at two other nearby buildings, 650 Townsend and 208 Utah, which also required extensive repositioning through renovation, re-branding, entitlements and leasing.

The Hamm’s Building has close proximity to public transportation, including the 16th Street BART station and multiple Muni bus routes. Moreover, the building is dog-friendly and bike-friendly, with a new bike garage and showers for tenants who choose to bike to work.

The Colliers International team of Tony Crossley, Frank Wheeler and Erik Hanson represented the seller. The buyers represented themselves.